As you build your business, you naturally explore different avenues of networking for new opportunities. One such source is the cross reference.

Cross references are strategic agreements, whether formal or informal, between companies serving similar markets to exchange their customers’ contact information with each other to market their complementary products or services. For example, web designers can create referral resources from freelance writers, branding and marketing companies, or web developers and other businesses that do things designers don’t, but offer complementary services to their end customers.

Cross-referrals are a great way to use free word-of-mouth advertising, although referral deals aren’t always free. There will be some arrangements where you can earn a commission based on a preset percentage or flat rate referral fee; But many new companies are happy to give free referrals in return for the same courtesy. While these referral deals may seem like promotional gold, you can’t always trust other companies to sell it to their customers. More than a passing remark may never be made to the occasional customer. If you rely heavily on referrals from others, you need to make a change in your approach. While paid referral agreements may offer more than one incentive, it is your responsibility to provide your referral sources with the appropriate materials to help them promote your business.

Some ideas include:

Professional-looking brochures and business cards that contain your website, contact information, and a review of your services or products. If the situation calls for it, you can regularly provide referral sources with discount offers and coupons that they can pass on to their own customers that are exclusive to referral customers or customers.

Promotional items such as pens and magnets that can be passed on to others.

Say thanks

When the referrals start rolling in, make sure your cross-referral business partners know how much you appreciate them. Complimentary thank you notes are crucial after referrals bring you business. Keep a stack of personalized thank you cards to mail after a referral comes in handy. You might consider a small gift basket with cookies or snacks to say thank you from time to time. A nice business lunch can also help reinforce your gratitude for referral assistance.

Referrals are not for everyone

Don’t expect everyone to be open to participating in free referrals. You can quickly become a nuisance to others if you constantly ask for help doing business. You need to have a strong marketing system in place, so you don’t rely solely on referrals for new business, making any referrals that come in the icing on the cake. It’s good practice to contact your cross-reference sources to keep them up to date on what’s new in your business.

Remember: It’s a two-way street, and you should work just as hard to refer your cross-reference business partners as you expect them to in return. The more often you make referrals, the more likely they are to return the favor.

Don’t forget your customers

One of your biggest resources for referrals may not be from other companies. In fact, it’s the praise from your customers that will ensure consistent word of mouth advertising for you. This is one of the reasons excellent customer service is vital to the success of your referral. Customers who have always had a good experience with your company will be more than willing to spread the word to others who need your product or service. While there is no obligation to reward these acts, you may provide something in return for their advertising on your behalf. The better you take care of the customers you already have, the more likely you are to expand your customer base. For those customers who are particularly nice to you, a token of appreciation like a gift of cookies or candy is sometimes more helpful than a discount on a service or a referral fee, and humanizes the relationship between you beyond a commercial one.

Referrals can be a great source of business for you, especially when you are just starting out. You can’t expect everyone to cooperate, but you certainly can’t be shy about approaching the situation. Be direct but flexible, and always offer to return the favor.